What is an Investment Scam?
Victims receive messages from people claiming to be stockbrokers or bank or financial company employees on social networking sites like Facebook, WeChat or Line. Responding to these messages leaves you vulnerable to an Investment Scam where fraudsters ask for personal details like NRIC and passport numbers, supposedly for an investment form. Scammers then ask victims to transfer money to banks in Hong Kong and China, pay administrative fees, security fees and taxes in order to receive the profits and returns.
Victims also receive phone calls from people claiming to be from the Hong Kong Monetary Authority or Hong Kong Overseas Control Centre, asking for a deposit before profits can be released to them.
- Online trading, particularly when they involve binary options. Binary options are attractive because they are simple and promise quick returns, but they are very risky. Many platforms offering binary trading options are fraudulent.
- People offering investment returns that are unreasonably high.
- Unfamiliar financial entities based outside of Singapore.
- Be cautious when befriending strangers on social media platforms.
- Understand that investments with high returns come with high risks.
- Always check with a licensed financial advisor before making any investment.
- Check if an entity is blacklisted on the Monetary Authority of Singapore (MAS) Investor Alert List. Deal with companies that are licensed and regulated by MAS.
- Ask as many questions as you need to fully understand the investment opportunity.
- Do a thorough check on the company and its representatives using resources such as the Financial Institution's Directory, Register or Representatives, and Investor Alert List, which can be found on the MAS website (www.mas.gov.sg).
- Never provide your name, identification number, passport details, contact details, bank account or credit card details to anyone you do not know well.
- Be careful when dealing with unregulated entities as you will have little recourse if things go wrong. If an entity is based outside of Singapore, check if it is regulated with the respective overseas authority.
- Before committing to an investment, always Ask, Check and Confirm.
Additional Resources
More information on investment scams can be found at MoneySense: How to spot investment scams
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